KUALA LUMPUR, Italy’s Eni and Petroliam Nasional Bhd (Petronas) have signed a binding agreement to establish a jointly owned company (NewCo), combining their upstream oil and gas assets in Indonesia and Malaysia.
The agreement, which follows the framework pact inked in June 2025, will see both parties hold equal stakes in NewCo, which will manage 19 assets — 14 in Indonesia and five in Malaysia — representing substantial enterprise value.
According to Eni, NewCo will be a financially independent entity with plans to invest over US$15 billion (US$1 = RM4.18) within the next five years.
Eni chief executive officer Claudio Descalzi said the collaboration would leverage existing production assets and development initiatives in Indonesia’s Kutei Basin and offshore Malaysia, targeting over 500,000 barrels of oil equivalent (boe) per day in the mid-term.
“This partnership will generate significant value for Eni, Petronas, as well as for Indonesia and Malaysia, driven by our strong exploration capabilities and track record in delivering efficient, high-value projects,” he said.
Through NewCo, both companies will merge their complementary portfolios, technical expertise, and regional experience to drive operational excellence, long-term value creation, and leadership in the energy transition.
The planned US$15 billion investment will fund at least eight new development projects and 15 exploration wells, aiming to develop around three billion boe of discovered reserves and unlock an estimated 10 billion boe in potential resources.
NewCo will integrate a large portfolio of gas-producing and development assets across both countries, starting with more than 300,000 boe per day in production and targeting over 500,000 boe per day in the medium term.
The venture aligns with Eni’s “satellite model” strategy, following successful partnerships such as Vår Energi in Norway, Azule Energy in Angola, and Ithaca Energy in the United Kingdom.
Both companies will now seek the necessary regulatory, government, and partner approvals in Malaysia and Indonesia, with the deal expected to close in 2026.
